Converting vertical wells to horizontal wells

Well I have fallen into tme mid-winter, too-much-time-on-my-hands mode.  I began to think about the long,rectangular units that have been declared around vertical wells.  Usually, the vertical well tends to be at one end or anther of the rectangular unit.  The vertical well usually has been drilled all of the way to the bottom of the Marcellus formation.  The units seem to be laid out for future horizontal wells, of which there may be two or three.  So how is the vertical well converted to a horizontal if the radius turn of the bore must begin above the Marcelllus?  Is the vertical well cemented back in to a higher level and then rebored as a horizontal?  What if the vertical is fracked first and the entire area beneath the existing pad is fractured and perhaps rendered unstable for a good sealed well bore for the other horizontals to pass through that area?  Yeah, I am really speculating about things that I know almost nothing about.  One small point though, gas companies are getting permits for vertical wells that can only pull from a very limited, circular area of land, then they are declaring units for horizontal wells encorporating long, areas of land which they did not designate as horizontal wells when they applied for the permit.  Are they exceeding the bounds of what they applied for?  Is this bordering on fraud?  Will the Pa. regulatory agencies and officials question or do anything about this, or will they kiss the behinds of the gas companies as usual?  In the words of Ross Perot, i hear a vast sucking sound again.

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Replies to This Discussion

Permalink Reply by Lynn Wigglesworth on January 5, 2011 at 3:50pm
I don't know much about the regulatory agencies, but it's perfectly legal according to East's lease. The lease allows them to hold 640+/- acres in a unit forever, with a shut-in well (doesn't specify that it has to be on a pipeline or anything), as long as they pay $5/acre/year. They don't have to produce any gas...until they are ready.
Permalink Reply by Brian Day on January 6, 2011 at 3:29am
The DEP should have been given control over the unit spacing in the Marcellus, regardless of lease wording.  They have had that control over deeper wells for many years.  The Pa. government could have given that control with the stroke of a pen and still could.
Permalink Reply by Lynn Wigglesworth on January 6, 2011 at 4:07am
I don't understand the concept of unit spacing. I believe that East intends to come back and fill in all the units with horizontal wells...is that what it means?
Permalink Reply by Brian Day on January 6, 2011 at 6:15am
What I am talking about is the ability of the DEP to limit unit size to less than 640 acres, regardless of what a lease says.  They have that power down to a deeper formation, below the Marcellus.  The name of that formation escapes me just this moment.  If that power had been modified to include the Marcellus and unit size had been limited to, say, 200 acres for a horizontal well and 100 acres for a vertical well, all kinds of land would soon be available to be leased again as the old leases ran out.  East would have had to have drilled many, many more wells to tie up their leased acerage.  I contacted legislators and the DEP at multiple levels about this long ago, as did others I believe, and nothing happened.  This adjustment in regulations could still happen perhaps, with enough public support.
Permalink Reply by Dustin L Moore on January 6, 2011 at 2:41am
I have been seeing them just coming back in and drilling a new well bores for the horizontals.  Most well pads accommodate 6-8 horizontal well paths (3-4 trending NW, 3-4 trending SE) all with separate well bores anywhere from 10-20 feet apart at the surface.  A lot of companies are drilling vertical wells to merely hold leases so they won't expire and have to be renegotiated at much higher costs than the original lease.  I agree that a 640+ acre rectangular unit from a single vertical well bore is bordering on being fraud (but depending on the language of the lease, I am sure they can make it appear to be legit).  Drilling a well (whether vertical and shut in) fulfills the development and operations clause of leases.
Permalink Reply by Brian Day on January 6, 2011 at 3:25am
One thing that New York State will benefit from with their moratorium on drilling will be the observation of the process Pa. has gone through for leasing.  New York landowners may have time to push forward legislation protecting their rights to fair unit sizes.  The New York legislature may decide better unit spacing control means more tax revenue for them.  Of course if the profit is on a more quiet, personal arrangement, well the betterment of the general constituiency cannot really compete.  Good luck to them in the future.
Permalink Reply by Mr_Safety on January 7, 2011 at 2:46am

Very good point.  I have heard that landowners are beginning to engage (savvy) legal counsel and are successfully challenging this practice, absent the need to enter into litigation.

 

I also understand that some of these so-called vertical wells are no more than 100 feet (or less) holes in the ground to set what I have been told is called a "conductor".

 

I can't believe we are not hearing more about such challenges.

 

Whatcha think?

Permalink Reply by Lynn Wigglesworth on January 7, 2011 at 6:36am
I think a lot of people can't afford a savvy lawyer, and that a company like East has a bunch of their own savvy lawyers. East's lease is pretty clear, and what they are doing is in keeping with the terms of their lease. Until the regulatory agencies get involved, I don't see much hope. Where are these challenges taking place? Are there records online that we can study?
Permalink Reply by Brian Day on January 7, 2011 at 9:00am

Hello Mr. Safety;

  Do you know of any specific cases or lawyers or landowner groups who are actually actively challenging thes unit sizes anywhere in the state?  I would like to contact anyone who is challenging this issue and see how they are making out.  I will put in a "friends" request to your account here if you do not wish to answer this in a public forum.  thanks,  Brian Day

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